WORKERS at two Newport companies face an uncertain future following the announcement of closures.

Caledonia Motors, based in Spytty Road, has been put into receivership and G4S announced its cash services branch in Factory Road will be closing at the end of May, affecting more than 50 employees at the two companies.

The car company was taken into administration by BDO Stoy Hayward, who made 25 members of staff redundant following a business review, with five workers continuing at the site.

The receivers blamed an increasingly competitive car retail sector and tight profit margins for the collapse.

Customers who have placed an order have been asked to contact the administrator and customers with a Citroen warranty will be able to honour them at other Citroen dealerships.

Business restructuring partner at BDO Stoy Hayward, Dermot Power, said the future of remaining dealerships is still being assessed by the receivers.

He said: "At this stage we are asking customers who have placed a car order and have put down a deposit to contact us.

"We will then review their particular situation and contact them as soon as possible."

The G4S cash services branch will close after an analysis of the operation of the business, with at least 30 workers thought to be affected, although the company said they will relocate a "significant" number of staff to other branches.

A spokesman for G4S Cash Services said: "The decision to close this operation in no way reflects the standard of service provided by the branch or indeed the commitment of the staff, which has been exemplary."

"We are determined to make this transition with care and thought to our staff and intend to keep redundancies to an absolute minimum."

  • Customers of Caledonia Motors wanting to enquire about their orders can contact 01925 847080 or 0161 817 7561.